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Home My WebLink About06-28-1976 Council Minutes Special Meeting �, � • CITY OF ORONO � Special Meeting of the Orono Council, 5: 00 P.M. June 28 , 1976 • The Orono Council met on the above date with • the following members present: Mayor Searles, . Councilmembers Butler and Massengale. Absent: Councilmembers Paurus and Welsh. Also present: � City Administrator Benson, Finance Director Kuehn, City Attorney Bruce Malkerson, John Iten, First � National Bank of Minneapolis; Robert W. Shaw, Allison-Williams Company; Charles R. Gesne, � Bancilorthwest; Duke Steenson, Piper, Jaffray & Hopwood, Inc. ; William Lind, Trust Department • First National Bank of Minneapolis; and Jack Van . Valkenburg, BancNorthwest. • Mr. Eioward F. Marcotte, Cronin and Marcotte, Inc. , BOND REFUND SALE Municipal Securities, commented on the present � bond market and Orono' s advance refund proposal, stating that all alternatives should be considered. � At 5: 30 P.M. , Phil Chenoweth of Ehlers & Associates, arrived with Mr. A1 Vachte, representing the First � National Bank of_ Minneapolis. � Mayor Searles announced that this meeting was • convened to consider bids for the purchase of $2, 635,000 general obligation refunding bonds of � 1976 received by the City Clerk-Administrator prior to 1: 00 P.M. , June 28, 1976, and opened and tabulated � by him. � Mr. Phil Chenoweth stated that the City Clerk- • Administrator at the 1: 00 P.M. bid opening, presented affidavits showing publication of notice of sale � ten days prior to the date of sale in the official newspaper and in Commercial West, a financial paper � published in Minneapolis, Minnesota, which affidavits were examined and found satisfactory and ordered i placed on file. � The City Clerk-Administrator then presented the bids . received in his office. These had been opened and tabluated and found to be as follows: � NET INTEREST � NAME OF BIDDER RATES YEARS COST & RATE PRICE ALLISON-WILLIAMS COMPANY 5. 750 1977/82 $1,106, 032.50 $2, 635 ,000. 00 � 1ST idATIONAL BANK OF MPLS. 5.50a 1983/86 � Co-Managers 5.600 1987 5. 7186% BancNorthwest 5. 75% 1988 � Dain, Kalman & Quail, Inc. 5.90% 1989 r4inneapolis, Minnesota 6. 00% 1990/91 � lst National Bank of St. Paul � St. Paul, Minnesota Merrill Lynch, Pierce, Fenner & . Smith Piper, Jaffray & Hopwood Inc. � White, Weld & Cc : Inc. Minneapolis, Minnesota � • " � M � SPECIAL ORONO COUNCIL MEETING HELD JUNE 2$ , 1976 Page 2 � NET INTEREST NAME OF BIDDER R.ATES YEARS COST & RATE PRICE � JUR.AN & MOODY, INC. 5. 50% 1977 84 1,122 ,485. 00 2,635, 000. 00 � American National Bank & Trust 5. 600 1985 St. Paul, Minnesota 5. 750 1986 5. 80320 � Marquette National Bank 5.90% 1987 Paine, Webber, Jackson & Curtis 6. 00o 1988/89 � E. J. Prescott & Co. 6. 100 1990 (Div. of Carleton D. Beh Co. ) 6.200 1991 � Miller & Schroeder Municipals, Inc. • Reynolds Securities Inc. Minneapolis, Minnesota � A representative of Ehlers & Associates, Inc. , � Phil Chenoweth, advised the City Council that if the bid of the lowest bidder were accepted, based on � preliminary calculations, the total interest cost savings as a result of the issuance of the bonds and � the refunding of the Improvement Bonds of 1974, • Improvement Bonds of 1970, Series A, and Improvement Bonds of 1970, Series B, thereby would be approximately • $164 ,000. The representatives of Ehlers & Associates, Inc. further advised the City Council that, on the + basis of preliminary calculations and estimates, the profit which it and The First National Bank of Saint � Paul would realize, under their commitment to provide for the sale to the City for deposit in the escrow � account to be maintained for the bonds to be refunded . securities of the type authorized by Section 475. 67, Subd. 8, Minnesota Statutes, in an amount sufficient � to satisfy all requirements of Section 475. 67 and the proposed arbitrage regulations under Section � 103 (d) of the Internal Revenue Code, is approximately $83,000, computed as follows: � Premiun over market required to � be paid by City on obligations • expected to be acquired for escrow fund by reason of arbitrage regu- � lations limiting yield thereon $83, 000 approximately � Less: Expenses of offering, including fees of escrow agent � and paying agents, bond counsel, accountants' fees, printing � expenses, publication costs and • other miscellaneous expenses $16 , 000 approximately TOTAL $67,000 approximately • • Massengale moved, Butler seconded, to adjourn ADJOURNMENT the meeting at 6:00 P.M. for dinner and reconvene � at 7: 30 P.M. Motion, Ayes (3) - Nays (0) . � � � � �� • ySPECIAL ORONO COUNCIL MEETING HELD JUNE 28, 1976 Page 3 , Searles moved, Butler seconded, to reconsider the previous motion. Motion, Ayes (3) - Na�s (0) . � . Searles moved, Butler seconded, to recess the RECESS MEETING � meeting until 7: 30 P.M. Motion, Ayes (3) - Nays (0) . � � . J . �� Robert L. Searles, Mayor � � -- � Attest: / � Walter R, nson, Cler -Administrator � � � � � � � � � � � � � r � � � � � �